Hi,
Please consider this as urgent.
The assessee purchased a property for Rs. 25,00,000/- and sold the same within three months for Rs.30,00,000/- and offered short term capital gains of Rs. 2,56,000/- (30 lakhs (-) 25 lakhs and 2.44 lakhs towards stamp duty).
Note: The Guideline Value of the said property is Rs.50,00,000/- (during both the purchase period and sale period)
The AO adopted the guideline value for sale consideration alone and recomputed the capital gain to Rs.22.56lakhs as against 2.56 offered by the assessee.
Can we raise a ground before CIT(A) to adopt the guidline value as the purchase price also (which would nullify the entire capital gains). Are there any supporting case laws?
Is there any other route available for the assessee since the assessee has not objected under Section 50C(2) while registration?
CAclubindia
